ClickUp, a productivity platform that brings work together in one place, has released a major study revealing the impact of the cost of living crisis on the UK’s workforce. It found that 26% (7.7 million) of people are planning to change jobs as a direct result of the crisis. With 68% of these people looking to do so within the next six months, the UK is set to face unprecedented upheaval as people look for better paying jobs.
The data reveals how British workers are being forced into this position, with 88% (26.1 million) unsure whether their current job can sustain them through the cost of living crisis. Significantly, 42% (12.5 million) say it has put a lot of pressure on them to earn more. The top drivers for this sentiment were the rising cost of energy (31%), the rising cost of everyday living goods (30%), and wages not rising fast enough (16%). The recent sharp drop in the value of the pound was also cited by 4% of people.
In addition, the data offers an insight into how businesses can proactively manage the issue of workers leaving for higher paid jobs, establishing a link between those who are best protected from the cost-of-living crisis and those working in highly productive organisations. Ultimately, the more productive businesses are, the more profitable they will be and the more they can pay their staff.
“The cost of living crisis will significantly impact employee turnover as people will look for higher paying jobs to try and offset the higher costs they are faced with,” said Natasha Wallace, International People Operations Partner, ClickUp. “Retaining and attracting top talent is now an even higher priority for businesses across the country. Offering competitive pay is increasingly more important, however, businesses need to be as efficient and profitable as possible, which is driven by improved productivity. A more productive workplace also enables employers to further invest in and empower employees; for example, financial and well-being workshops, enhanced benefits and career development, which can all help manage the concerns around the cost-of-living crisis.”
Britain braces for worker turnover and worker shortages
Britain is set for high levels of worker turnover and potential worker shortages. ClickUp’s research reveals that some people are looking for higher paying jobs within their same industry or skillset, while others are looking to leave their field entirely to start a new career.
Businesses in the IT and hospitality industries are set to feel the most disruption in general –
each with 39% of their workforces saying they plan to change jobs. Those with employees working as drivers (36%), in business services (33%) and construction (33%) will also be significantly affected. Of these people, 44% of IT professionals are looking for roles in the same field, indicating a relatively high degree of staff turnover within the industry, compared to only 20% of hospitality workers.